Which of the following would increase national income?

1. 1. Increase in taxation
   2. Increase in govt. spending
   3. Increase in savings
   4. Decrease in consumption spending

A TV set purchased from a retail store is an example of _____.

1. 1. Intermediate goods
   2. Capital goods
   3. Surplus goods
   4. Final goods

Market value of all final goods and services produced in an country during a year is definition of _____.

1. 1. GNP
   2. NNP
   3. NI
   4. Consumption

GNP includes _____.

1. 1. A loan from one’s parents
   2. A loan from a bank
   3. A broker’s commission
   4. Gifts and donations

If we compare GDP and GNP, then _____.

1. 1. GNP = GDP – net income from abroad
   2. GNP = GDP + net income from abroad
   3. GNP = NNP – net income from abroad
   4. GNP = NNP + net income from abroad

Which of the following statement is true?

1. 1. National Expenditure = National Income
   2. National Expenditure = National Income + National Production
   3. National Expenditure = National Income + National Taxes
   4. National Expenditure = National Income – Taxes

Consumption spending does not include _____.

1. 1. Household’s purchases of food
   2. Household’s purchase of a car
   3. Household’s payment of rent for an apartment
   4. Household’s purchase of stock in any XYZ corporation

GNP is _____.

1. 1. total sales in the economy
   2. total monetary transactions in an economy
   3. total spending in an economy
   4. the market value of all goods and services produced in an economy

Net Investment is _____.

1. 1. Gross Investment minus household Investment
   2. Gross Investment minus capital consumption allowance
   3. Gross Investment minus government investment
   4. None of these

Transfer payments means _____.

1. 1. Bank loans
   2. The payment without work 
   3. Tax payments
   4. Payments made to all factors of production